Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (2086)	3/15/2004 2:15:33 PM
From: mishedlo	Respond to of 116555

Sweden's Riksbank says inflation likely to undershoot target next 2 yrs Monday, March 15, 2004 11:42:09 AM STOCKHOLM (AFX) - The Riksbank said most factors suggest that inflation in the next two years will be below its 2 pct target. Central bank governor Lars Heikensten said that as a result of lower expected increases in wage costs and better productivity growth, unit labour costs are expected today to grow a number of tenths slower in the years ahead compared with December. "Normally, there are few factors that are more significant for inflation a few years ahead than unit labour costs," Heikensten said. In addition, international price pressure is muted, he said. Heikensten said that economic developments in Sweden are essentially proceeding as expected, even if there has been a certain shift between different demand components in that private sector consumption -- and particularly exports -- are growing slightly faster, while growth in local government consumption will probably be somewhat weaker. "In all, there is still reason to expect GDP growth in the years ahead to be somewhat higher than what the Riksbank believes to be sustainable in the long term. For inflation in the years ahead, it is of course important that there are some unutilised resources to begin with," Heikensten said. Commenting on the exchange rate, Heikensten said there is now less reason to believe the krona will strengthen from current levels as witnessed by recent weakening. "One reason for this appears to be expected relative interest rate (differentials), where there has been a certain shift since the autumn," he said. fxstreet.com